Kraft Foods Group Earnings: Here’s Why Shares are Up Now
Kraft Foods Group (NASDAQ:KRFT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.46%.
Kraft Foods Group Earnings Cheat Sheet
Revenue: Decreased 1.07% to $4.74 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kraft Foods Group reported adjusted EPS income of $0.85 per share. By that measure, the company beat the mean analyst estimate of $0.66. It missed the average revenue estimate of $4.81 billion.
Quoting Management: “We continue to make meaningful progress on cost savings, cash flow, market share and building our brands for the long term,” said Tony Vernon, CEO of Kraft. “Our brand investments and top-line growth in the second quarter were held back by the return discipline we’re applying to marketing, promotion and innovation. We expect to see profitable growth from a stronger base going forward and greater revenue growth in subsequent quarters as more new initiatives come to market.”
Key Stats (on next page)…
Revenue increased 4.16% from $4.55 billion in the previous quarter. EPS increased 11.84% from $0.76 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.73 and has not changed. For the current year, the average estimate has moved up from a profit of $2.78 to a profit of $2.79 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)